Actuarial Fiscal Note
Retirement Systems Impacted by Legislation:
PERS
FUND(S):
PERS 2510
Sources of Revenue:
Other Fund State and Local Govts
Legislation creates:
Neither Program nor Fund
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
The bill as drafted provides a very specialized window for the repurchase of prior service under PERS. Member must be hired before February 1, 2004, have worked at least 10 years, attained age 68. Member must repay repurchase amount within 90 days fo tenth year of service.
Exposure is extremely limited anad expected to benefit one member. Actuarial cost for an average member estimated at $50,000 impacting long term actuarial experience.
Fiscal Detail of Actuarial Impact
Impact on current benefit costs, prior service benefit costs and ongoing contribution requirements following full implementation.
Impact On |
Following Full Implementation |
Increase in Unfunded Actuarial Accrued Liability |
Initial Impact on Annual Contribution Requirement of System(s) |
Contribution Increase as a Percentage of Annual Payroll |
Total Annual Costs |
$50,000.00 |
$50,000.00 |
0.00 % |
Normal Cost of System |
N/A |
$0.00 |
0.00 % |
Past Service Liabilities |
$50,000.00 |
$50,000.00 |
0.00 % |
Fiscal Year Past Service Amortization Period Ends |
N/A |
FY2015 |
N/A |
Explanation of above Actuarial estimates:
Cost is estimated on an average cost basis for special window. Actuarial Accrued Liability is estimated at $50,000 as a single one year cost increase.
Analysis of Impact on Public Pension Policy:
Repurchase eligibility window provided very limited eligibility for the repurchase. One member is assumed for cost purposes.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The bill as drafted provides a very specialized window for the repurchase of prior service under PERS. Member must be hired before February 1, 2004, have worked at least 10 years, attained age 68. Member must repay repurchase amount within 90 days fo tenth year of service.
Exposure is extremely limited anad expected to benefit one member. Actuarial cost for an average member estimated at $50,000 impacting long term actuarial experience.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2014 Increase/Decrease (use"-") |
2015 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
50,000 |
0 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above Fiscal Note estimates (include possible long-range effect):
Cost is estimated on an average cost basis for special window. Actuarial Accrued Liability is estimated at $50,000 as a single one year cost increase.
Memorandum
Repurchase eligibility window provided very limited eligibility for the repurchase. One member is assumed for cost purposes.
Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email Address: harry.w.mandel@wv.gov